MARKET COMMENT
For Sept. 2, 2008. Courtesy of Dave Fry, ETF Digest.
There are almost too many divergences to account for in one blog entry. Financials and airlines rally, commodities collapse, the dollar rallies, tech pops and poops, Crammer says sell-off phony [he should know], volume not that strong, more hurricanes in sight, economic reality meets wishful thinking, well…need I continue? Investors are confused and it’s manifested in their schizoid behavior driving markets up and down by large chunks day by day.
That should do it for today. Investors are unsettled about a course of action. They cheered a benign Gustav aftermath as energy prices continued their slide. But the contagion to other commodity sectors is dramatic and caused by a weakening economy; hence, the selling. 
It’s a short week but we’re not off to a great start. The trading desks can have fun messing around with financials and homebuilders for example. But these are best left to the traders for now.
Let’s see what happens.
Have a pleasant evening.
Disclaimer: Among other issues the ETF Digest maintains long or short positions in: IWM, UWM, QQQQ, QLD, IVE, XLY, XLV, RXL, XLP, UGE, DVY, UUP, FXE, DRR, FXA, GLD, DZZ, DBC, DEE, USO, UNG, EFA, EFU, EEM, EEV and FXI.
